Question

If you were to market a product (let's say barbeque smokers) in Bolivia, what are some of the CAGE attributes that would jump out at you as a concern?

Answer 1

The CAGE distance framework helps to find out the administrative, geographical, economical, and cultural differences between the different countries that the organism would know when developing an international strategy.

Some CAGE attributes the would jump out when considering bolivia are as follows:

Cultural distance:

• Different languages, traditions, ethnicity, religion (mainly roman catholic), and social norms and beliefs.
• Trdatuonalism vs insularity: Bolivia is a county located in Andes mountains with strong traditional beliefs. BOlivia is a traditionalist country.

Adminstratve distance:

• Closed vs open economy: Bolivia is a closed economy because there is a very limited flow of services and goods in the economy.
• Political hostility and lack of enough membership in international platforms or organizations.
• High corruption and weak institutions.

Geographical distance:

• It is landlocked and it has a different time zone from the USA.
• There is a lack of fast and effective transportation and communication.

Economic distance:

• The difference between rich and poor is very high.
• Per capita income is very low.
• size of the economy is low despite being a mineral-rich country.